Cosmetics rush to announce price cuts to grab the market
release time：September，03，2019
In response to the downward adjustment of the tariff rate on imported cosmetics, multinational daily chemical companies are rushing to announce price cuts. After L'Oreal announced the reduction of the price of imported goods, Estee Lauder announced yesterday that it lowered the price of imported goods. Analysts from cosmetics manufacturers pointed out that multinational daily chemical companies are vying to cut prices in order to improve their performance and compete for the domestic market.According to the Ministry of Finance's announcement on Monday, starting from June 1, 2015, China will reduce the import duty rate of some consumer goods such as clothing, shoes, skin care products, and diapers, with an average reduction of more than 50%. Among them, the cosmetics tariff was reduced from 5% to 2%. Estée Lauder issued a statement yesterday saying that it strongly supports the government's measures to reduce tariffs. L'Oreal announced on May 26 that it lowered the price of imported products.
Estee Lauder and L'Oreal did not announce the price reduction and price reduction. The relevant person in charge of Estee Lauder told the Beijing Morning Post that the company is in discussions and further information will be announced in time.
Insiders pointed out that L'Oreal and Estee Lauder's mid-to-high end products will become the main force of price reduction. Most of L'Oréal's popular brands such as L'Oreal Paris and Maybelline are locally produced, while the so-called imported brands include high-end brands such as Helena, Lancome and Biotherm. The products of Estee Lauder are basically imported.
The price reduction trend of the Japanese brand will also narrow the price difference between domestic imported cosmetics and the same products overseas. According to the monitoring of the cosmetics OEM's previous Fortune Institute, the average internal and external price difference of high-end imported cosmetics ranged from 50% to 100%.
"In recent years, with the rise of cross-border e-commerce, overseas travel, duty-free shops, and consumption of Haitao, the domestic consumption of high-end cosmetics has been greatly affected." Feng Jianjun, a daily chemical expert, pointed out that L'Oreal and Estee Lauder are vying to cut prices. It is to cater to the tariff reduction, on the one hand to boost its domestic sales. L'Oreal and Estee Lauder also admitted that the price of imported products was lowered to boost domestic consumption.
